Memory Shortage from AI Boom Reaches Automobiles: GM and BYD Raise Prices

The shortage of memory chips, sparked by the boom in artificial intelligence, has reached the automotive industry. General Motors has revised its previous forecast and now expects new car prices to increase by 0.3% this year. GM Chief Financial Officer Paul Jacobson stated that the company's costs would rise by $1.5-2 billion, mainly due to the higher price of automotive components, especially memory chips. Chinese automotive giant BYD has raised prices for advanced driver-assistance systems by 20%. According to Micron, the average modern vehicle uses 90 gigabytes of DRAM and NAND memory, and by 2026, that volume will grow to 278 gigabytes; premium models may consume up to 2 terabytes. Infotainment systems require 4 to 16 gigabytes, ADAS systems require 8 to 32 gigabytes, centralized systems require 16 to 64 gigabytes, and with the advent of AI assistants, at least 256 gigabytes will be needed. Vehicles with autonomy level 4 require at least 300 gigabytes of RAM. The production of automotive memory takes longer due to the need for certification, which exacerbates the shortage and could lead to supply delays and further price increases.